Karelian losses widen as work begins at Lahtojoki asset

AIM-listed explorer Karelian Diamonds saw losses widen throughout its "year of exploration success".

Losses widened 7% year-on-year to €439,568 on the back of costs associated with a preliminary economic assessment of its Lahtojoki diamond deposit in Finland, as well as those related to securing a mining concession for the asset and launching an exploration programme.

Net assets rose 4% to €9.66m, while cash and equivalents shrunk 96% to €18,703.

Karelian also highlighted positive exploration results since the end of its trading year and recent drill core sampling which revealed orangeite, a potentially diamondiferous host rock.

Chairman Richard Conroy, said: "After a year of exploration success, we have built on that with significant progress towards identifying the source of the green diamond and, post period, the discovery of Orangeite (Group II Kimberlite) and importantly we are accelerating work towards possible mine development at the Lahtojoki diamond deposit, having received a positive PEA and excellent assay results from the large Eastern lobe."

As of 0950 GMT, Karelian shares had tumbled 9.09% to 4p.